AGENDA

Industry

Clients

Growth and efficiency

INDUSTRIA

01

IN CHILESUPERMARKETS

1,372STORES

2013

12.9 BN USD

1,363STORES

15.6 BN USD

2016

Supermarkets Sales (in BN USD)

and stores growth

Data: 2016 / Average Variation: 2014 to 2016

28%

25%

Is what RETAIL

represents of Chile‘s

GDP

Is the weight of the SUPERMARKETS

INDUSTRY over retail in Chile

Source: INE /Banco Central

Significant Operators

4

SUPERMARKETS

INDUSTRY IN

CHILE

Source: Nielsen Master Sample/ Cities with more than 30.000 inhabitants

65% PENETRATION OF TOTAL INVOICING120.000 points of sale in the country.

15 %

2,1 %

81,8 %

1.0 %

2016

% STORES

2016

6 %

15 %

14 %

65 %

% ACV (INVOICING)

Traditional

Pharmacies

Other

Supermarkets

SUPERMARKETS IN CHILE

SHARE M2: 22.9%STORES: 461

SHARE M2: 9.4%

STORES: 62

SHARE M2: 25.8%STORES: 244

SHARE M2: 41.9%

STORES: 366

Source: Cámara Chilena de Comercio

A HIGHLY

COMPETITIVE

MARKET

21%

Has mobile internet and 88% of them has an

access to Facebook. Internet penetration :

49.2% in 2013 v/s 84.1% in 2016

OF CHILEANS

Has bought through

internet during the last

year 8% of them has

done it for his/her

supermarket shopping.

7 OF EVERY 10 CHILEANS

Source: Estudio Chile 3D. GFK 2017

DIGITAL CHALLENGE AND

OMNICHANNEL BUSINESS

QUALITY AND SERVICE

48 stores

CONVENIENCE AND CLOSENESS

195 stores

C2/C3 DEABC1

TWO BRANDS

STRATEGY

CLIENTS

02

(IPSOS Global Trends. El mercurio: economía y negocio. June 2017)

79%

Social Responsibility

and Sustainability.

Wider selection in general.

Price and

promotions

Comfortable purchase

experience.73% 58%

65%

CONSUMERS MOST

VALUED

CHARACTERISTICS

71% Of Chileans have changed their way

of spending in order to save.

45%Decreased their

attending to events

out of home.

43%Moved to less

expensive brands.

43%Reduced their clothing

expense.

43%Spends less eating our of

home.

Source: Nielsen Consumer Confidence Study - Q2’17

A CONSUMER

THAT LOOKS

MORE FOR

OFFERS

32% of Chileans purchase under the

influence of a promotion or offer.

22% declares being under the influence of a

television advertisement.

15% by an internet advertisement.

Promotions activity grows, becoming a sales

growth driver at Supermarkets.

Source: Nielsen a Q2 2017. Estudio Chile 3D. GFK 2017

TOTAL:

1.541 Sku

Of Chileans declares having

bought own brand products.

Source: Internal Analysis

declares having moved to

less expensive brands.

65%

43%

OWN BRANDS

DIFFERENTIATION AND PRODUCTS

CONVENIENCE

120 suppliers | 260 brands | 24 different origins

EXCLUSIVE IMPORTED

TOTAL: 6578 Sku

A CONSUMER THAT

LOOKS FOR A WIDER

SELECTION

TOTAL: 1600 Sku

A CONSUMER

CONNECTED TO THE

SOCIETY’S

INTERESTS

67% of individuals prefer brands that

make a positive contribution to society.

Source: 1 IPSOS Global Trends. El mercurio: economía y negocio. June 2017

/ 2 CHILE 3D. GFK 2017 / 3 Estudio Millennials Chilenos. Visión Humana

2017.

28% of Chileans declares to buy

items of brands that care about the

Environment.

49% of Millennials prefer

brands that support social

causes.

1

2

3

QUALITY

OF LIFE

ENVIRONMENTAL

INNOVATION

SUPPLIERS’

AWARENESS

23 COMMITMENTS WITH SUSTAINABILITY

PILLARS OF

SUSTAINABILITY

Alliance with Fundación Mi Parque.

Club Jumbito.

We care about the quality of life

of our clients, collaborators and

the community:

We adhere to municipal agreements

eliminating the use of plastic bags.

Alliance with foundations concerned

with food restrictions.

Green points at our stores.

Alliance with Aldea SOS.

+ 8.000 M2 OF GREEN AREAS

+ 9.000 NIÑOS VISITANDO NUESTROS stores

1 MONTH OF FOOD

+ 16 DISTRICTS

+ 1.000 ITEMS

Restatement of own manufacturing MMPP products.

A wide selection of Free of Products.

Fish and Fruit and Vegetables Certifications.

Food innocuousness audit.

Permanent collaborative work with foundations.

70% of Chileans is interested in a healthy

life.

66% considers having a healthy life.

Source: CHILE3D 2016. GFK - Internal Analysis

A CLIENT THAT

WISHES TO BE

HEALTHIER

ACTIVE PROMOTERS OF

HEALTHY FOOD

Convivir Diabetes Juvenil

Creciendo con

Alergias

Sports and healthy life

promotion through our

Alliance with TEAM CHILE.

What do they expect when purchasing over internet?

Source: CHILE3D 2016. GFK

21%OF CHILEANS

PURCHASES

ONLINE

ARE MILLENNIALS

ARE X GENERATION48% simple return

policies

79% lower

prices

58% Speedy

delivery

48% monitoring of the

product status

27%

21%

OMNICHANNEL

CONSUMER

+ DIGITAL

CONSUMER

We launched our new online store in

every regional capital.

(Iquique. Antofagasta. Calama. Curicó.

Talca. Chillán. Concepción. Valdivia)

New Jumbo.cl page

123 We doubled to 20,400 the SKU Food

items in our Online store (88%)

We increased our Food home

delivery coverage from 42% to 68%

of the national territory.

Coverage achieved in Q2 2017 – Iquique to Puerto Montt

Temuco

Osorno

La Serena

Viña

Los Andes

Talca. Curicó y Chillán

Valdivia

CopiapóNov-2017

Antofagasta

Calama

Iquique

Rancagua

ConcepciónRM

Puerto Montt

El Alba La DehesaLa FloridaLa Reina

PeñalolénEl LlanoMaipú

2017 OMNICHANNELING MILESTONES

PURCHASE ONLINE

And we send it to your house

PURCHASE ONLINE

And withdraw in your car

PURCHASE AT THE

STORE

And we send it to your house

PURCHASE ONLINE

And we send it to you in less than 90 minutes.

PURCHASE ONLINE

And withdraw your products at your

Jumbo.

PURCHASE OVER THE

TELEPHONE

And we send it to your house

THAT ADAPT TO EVERY NEED

DEVELOPMENT OF DIFFERENT

SERVICES

We implemented our “90 Minutes” On Demand business model,

currently operating at 11 districts of MR.

Orders

A NEW BUSINESS MODEL

Permanent programs to

improve work environment

and the safety of our

collaborators.

Implementation of

volunteer activities.

Publication of our Diversity

and Inclusion Policy.

COMMITMENT WITH THE

QUALITY OF LIFE OF

OUR COLLABORATORS

GROWTH

AND EFFICIENCY

03

Self

service

Nuevo

centro de

distribución

Centrales

Productivas

Eficiencias en

gastos de

operación

Self

Service

New

Distribution

Center

Productive

Centers

Operational

expense

efficiency

ONE YEAR AGO WE ANNOUNCED

bakar

Coverage: Direct logistics for

170 stores, from IV to IX region.

Distribution of 16 pre-cooked

refrigerated products.

Plant with 4 production lines. 3

shifts x 24 hours.

BAKERY

CENTER

27

Process standardization.

Products and quality.

New developments.

Products Branding.

Coverage: From IV to region.

Santa Isabel: 165 stores.

Jumbo: 37 stores.

Products:

Santa Isabel: Cakes and pastry.

Jumbo: Basic cakes (Cream).

PASTRIES

Coverage: From Arica to Puerto

Montt (I-X region).

Santa Isabel: 195 stores.

Jumbo: 49 stores.

Products:

Santa Isabel: Ground, chopped meat

and steak.

Jumbo: Ground, chopped meat,

steak and portioned fatless pieces.

Simplifying and eliminating processes in the room.

Ensuring product innocuousness and availability.

Products Development. Branding and labeling.

MEAT CENTRAL

Fruit, Greens, meat and fresh products. Temperatures

0°C, 6°C and 12°C in the different chambers.

Built Area: 30,421 m2

Sorter maximum flow: 90,000 boxes/day

VESPUCIO

DISTRIBUTION

CENTER

Taking advantage of being a part of Cencosud synergies

78

Decrease of

expenses made

Processes

performed

-12%

MM USD4.8

2017 CENTRALIZED NEGOTIATIONS

ENERGY

MANAGEMENT

CHANGE OF

TECHNOLOGY

RATE

PILLARS OF

OUR ENERGY

EFFICIENCY

DECREASED ENERGY

CONSUMPTION FROM 2013

TO DATE

ENERGY

EFFICIENCY

LOW PROFITABILITY

Value Review proposal focused on client:

PROCESSES | STRUCTURE | SELECTION | LAY

OUT

Nº of stores

LOSS DECREASE

- 50 %

- 21 %

- 47 %

0 %

2015 2016 2017January - June

2015 2016 2017January - June

STORE

PLAN

2017 Installed capacity

15 stores

12 stores